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HR Party of One is brought to you by BerniePortal. About nine years ago, SHRM famously asked if
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the annual performance review was dead. Since then, and since our last episode on this topic,
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many businesses—big and small—have started moving away from the old annual review model.
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But here’s the problem: Even though more companies are looking for better ways to
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manage employee performance, many are still making some fundamental mistakes. And those
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mistakes can lead to disengaged employees, missed growth opportunities, and wasted time.
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In this episode of HR Party of One, we’re going to dive into the five most common
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performance evaluation mistakes that HR professionals and managers make—and
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more importantly, how to avoid them. By the end of this episode, you’ll have
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a clearer idea of how to run effective evaluations that actually improve performance and engagement.
Over-Reliance on Annual Performance Reviews
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Let’s get started!
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Mistake #1: Over-Reliance on Annual Performance Reviews.
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The annual performance review has been around for decades. It used
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to be the primary way employers gave feedback, and for some, it still is.
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But over-relying on these once-a-year reviews causes more harm than good.
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Why? Because waiting 12 months to provide feedback means that issues are left unaddressed
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for too long. Employees may have completed projects months ago that never got mentioned,
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or they might have developed bad habits that are now harder to correct.
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Take, for example, a situation where an employee had a stellar start to the
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year but struggled in the last quarter. If you’re only doing an annual review,
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that recent dip could cloud your view of the full year's work, leading to an unfair assessment.
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The solution? Replace annual reviews with ongoing performance management. Managers can conduct
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regular check-ins with their direct reports—weekly or monthly, known as one-to-ones—and make feedback
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a continuous loop. This loop keeps performance on track all year long, helps employees
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course-correct, and creates a culture of open and constant communication. Employees feel more
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comfortable raising concerns with their managers, making it easier to address issues before they
Ignoring Employee Self-Evaluations
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escalate. With the Performance feature of an all-in-one HRIS like BerniePortal, managers can
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easily document one-to-one meetings, and employees can consistently track their performance progress.
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Mistake #2: Ignoring Employee Self-Evaluations. Who knows more about an employee's daily
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performance than the employee themselves? Yet, a common mistake HR professionals and managers
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make is ignoring self-evaluations. As John Wooden wisely put it, “Without proper self-evaluation,
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failure is inevitable.” When managers overlook the employee’s own insights, evaluations become
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one-sided, missing valuable perspectives that could prevent missteps and foster growth.
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For example, an employee might have taken initiative on a project you
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didn’t know about or developed new skills that didn’t get reflected in their formal
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role. If you skip the self-evaluation, you miss out on this crucial insight.
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Solution: Incorporate self-evaluations into your process. Ask employees to
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reflect on their own strengths, weaknesses, and accomplishments. This not only gives you a fuller
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picture but also encourages employees to take ownership of their development.
Unclear Performance Metrics
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Mistake #3: Unclear Performance Metrics. Performance reviews often fail because
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the metrics are too vague or inconsistent. Saying “do better”
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or “improve teamwork” isn’t enough. Solution: Make sure employees know
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exactly what success looks like. You can do so by using SMART goals– SMART goals are Specific,
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Measurable, Achievable, Relevant, and Time-bound. When goals are crystal clear,
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both managers and employees know exactly what’s required and how success will be measured.
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For example, instead of telling an employee to “increase productivity,” be specific:
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“Complete X number of tasks per week” or “Submit first draft of
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project 2 weeks ahead of the final due date.” Without clear metrics,
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employees won’t know what you expect, and you won’t be able to measure progress effectively.
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Additionally, you can incorporate levels docs into your performance
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evaluation process. Levels documents visually represent a team’s skills, scope, and years of
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experience. These three areas are quantified and then used to determine the fourth area,
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compensation. These documents are very unique to your organization and individual teams. By
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using them, employees will know precisely what they need to do to earn more pay.
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For more information on levels docs, check out this episode. I’ll link it in the description.
Focusing Only on Negative Feedback
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Mistake #4: Focusing Only on Negative Feedback One of the worst mistakes you can make is
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turning a performance review into a criticism session. Focusing only on what the employee is
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doing wrong can demoralize them, making them feel like their contributions aren’t valued.
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For instance, if an employee consistently meets their goals but struggles with one specific area,
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focusing solely on that issue can overshadow all their accomplishments.
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Solution: Provide balanced feedback. For every area of improvement, highlight a
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strength or accomplishment. This creates a positive, forward-thinking conversation
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where employees feel motivated to improve rather than discouraged.
Failure to Prepare for Reviews
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Mistake #5: Failure to Prepare for Reviews When managers or HR rush into a performance review
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without preparing, the result is a disorganized, ineffective meeting. Scrambling to gather feedback
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or metrics at the last minute signals to the employee that their performance isn’t a priority.
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Think about it—would you feel valued if your manager seemed unprepared for your review?
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Solution: Set aside time to thoroughly prepare before each review. Gather feedback from multiple
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sources, track progress on goals, and ensure you have specific examples of performance to
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discuss. Here’s when one-to-one meeting notes can be especially handy. The more
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prepared you are, the more meaningful and constructive the review will be.
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There you have it—five common performance evaluation mistakes and how to avoid them!
Final Thoughts
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By fixing these, you’ll transform your performance management from a stressful,
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one-sided task into a process that truly helps your team grow.
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If you want to dive deeper into improving performance management at your organization,
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check out our BernieU course, How Employers Can Master Managing Employee Performance.
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It’s free, online, and approved for HRCI and SHRM recertification
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credits. I’ll link it in the description below. Remember—your role is as strategic as you make it!
